Alex Saab, a Colombian-Venezuelan businessman and former ally of former Venezuelan President Nicolas Maduro, pleaded guilty in a US federal court to laundering proceeds from a bribery and fraud scheme. Saab admitted on Tuesday before US District Judge Kathleen Williams in Miami to organizing a system of bribes to Venezuelan officials, which allowed companies he secretly controlled to secure government contracts for importing food and medicine.
According to the US Justice Department, the fraudulent contracts were associated with CLAP, a Venezuelan welfare program designed to distribute subsidized food to the public during the country's economic crisis. The US Attorney's Office for the Southern District of Florida stated that Saab and his associates “used fake companies, false invoices and fraudulent shipping records to skim hundreds of millions of dollars” intended for public benefit, subsequently laundering the proceeds through shell companies abroad, including in the United States.
Assistant Attorney General A Tysen Duva of the Justice Department’s Criminal Division noted that Saab “created a complex web of front companies, shell accounts, and false records to perpetuate his scheme, win lucrative public contracts, and line his own pockets as well as his conspirators.” Saab also acknowledged exploiting his connections to Venezuelan officials to access oil owned by state firm PDVSA, selling it under false pretenses as US sanctions impacted the country's finances.
Saab pleaded guilty to a single count of conspiracy to launder monetary instruments, which carries a maximum sentence of 20 years. As part of the plea deal, he agreed to forfeit $195 million in criminal proceeds and to cooperate with ongoing federal investigations. Prosecutors indicated they would recommend a sentence at the lower end of the range and seek further reductions if his cooperation is substantial.
This case represents Saab’s second prosecution in the US. He was initially arrested in Cape Verde in 2020 and extradited to face similar charges, before former US President Joe Biden granted him clemency in December 2023 as part of a prisoner exchange with Venezuela. A new indictment was issued in January, and Saab was deported to the US in May by Venezuela’s interim government under pressure from Washington, following the US's removal of Maduro from power and bringing him to US soil.
US Attorney Jason Reding Quinones stated that the case “sends a clear message: political connections, wealth and proximity to a corrupt regime will not put anyone beyond the reach of American justice.”